From the desk of Steve Strazza @Sstrazza

Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs.

We’ve also sprinkled in some of the largest ADRs from countries that did not make the market cap cut. 

These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.

It’s got all the big names and more--but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.

The beauty of these scans is really in their simplicity.

We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.

Based on the market environment, we can also flip the scan on its head and filter for weakness.

Let’s dive in and take a look at some of the most important stocks from around the world.

Here’s this week’s list:

From the desk of Steven Strazza @Sstrazza and Grant Hawkridge @granthawkridge

There’s been very little happening on our risk checklist, as evidence for risk appetite remains split between bulls and bears. 

The last time we discussed it was in our Q1 Playbook. While the list hasn’t picked a decisive direction yet, the fact that it's such a mixed bag is information in and of itself.

It's been an excellent roadmap for us in recent months, because just like the market -- our risk checklist has also been a mess. 

Let's take a look at where we stand and discuss some of the more recent developments.

Here it is, with a current reading of 44%:

From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley

Not all stressors are debilitating.

In some cases, stress can push us to perform at our highest level. But, of course, there are instances when opposing forces become overwhelming, making it near impossible to reach our goals.

We’ve all been there.

And the markets are no different.

While we keep tabs on our heart rate or blood pressure to gauge our stress levels, we focus on credit spreads to measure stress in the market.

Given that rates continue to rise worldwide, it’s an appropriate time to evaluate these spreads and the potential obstacles that may lay ahead for risk assets.

We recently broke down credit spreads in anticipation of them widening and outlined some charts that are driving this trend.

Read our January 27 post for more information about the ins and outs of credit spreads and how we analyze them.

Since these spreads provide valuable information on the health of the overall market, we’re going to check back in and discuss another chart that is on our radar. 

These are the registration details for our live mid-month conference call for Premium Members of All Star Charts.

Our next Live Call will be held on Tuesday February 22nd at 6PM ET. As always, if you cannot make the call live, the video and slides will be archived and published here along with every other live call since 2015.

Here are the details for Tuesday night:

From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley

Consolidation and range-bound action have dominated the currency market since late last year.

While commodities and cyclical stocks -- especially energy -- continue to catch a bid, commodity-centric currencies like the Australian and Canadian dollars fail to show any definitive signs of strength.

At the same time, the US dollar isn’t doing much either, as the US Dollar Index $DXY has been chopping sideways for several months.

Long story short, indecision is the overarching theme for forex markets at the moment.

One forex pair that does an excellent job of illustrating the trendless nature of these markets is the AUD/JPY.

Here’s a chart of the AUD/JPY cross:

From the desk of Steve Strazza @Sstrazza

Welcome to the 2 to 100 Club.

As many of you know, something we've been working on internally is using various bottom-up tools and scans to complement our top-down approach. It's really been working for us!

One way we're doing this is by identifying the strongest growth stocks as they climb the market-cap ladder from small- to mid- to large- and, ultimately, to mega-cap status (over $200B).

Once they graduate from small-cap to mid-cap status (over $2B), they come on our radar. Likewise, when they surpass the roughly $30B mark, they roll off our list.

But the scan doesn't just end there.

We only want to look at the strongest growth industries in the market, as that is typically where these potential 50-baggers come from.

From the desk of Steve Strazza @sstrazza

This is one of our favorite bottom-up scans: Follow the Flow. In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish… but not both.

We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients. Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.

We also weed out hedging activity and ensure there are no offsetting trades that either neutralize or cap the risk on these unusual options trades.

From the desk of Steve Strazza @Sstrazza

Welcome to our latest Minor Leaguers report.

We’ve had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.

We recently decided to expand our universe to include some mid-caps…

For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B.

That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.

The way we did this is simple…

To make the cut for our new Minor Leaguers list, a company must have a market cap between $1 and $4B.

It's Saturday Morning Chartoons time. 

This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.

You can find the whole list of trades here.

Below you'll find the full PDF of this week's charts:

From the desk of Steve Strazza @Sstrazza

Our Hall of Famers list is composed of the 150 largest US-based stocks.

These stocks range from the mega-cap growth behemoths like Apple and Microsoft – with market caps in excess of $2T – to some of the new-age large-cap disruptors such as Moderna, Square, and Snap.

It has all the big names and more.

It doesn’t include ADRs or any stock not domiciled in the US. But don’t worry; we developed a separate universe for that which you can check out here.

The Hall of Famers is simple.

We take our list of 150 names and then apply our technical filters so the strongest stocks with the most momentum rise to the top.

Let’s dive right in and check out what these big boys are up to.

Here’s this week’s list:

From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley  

It’s only six weeks into the new year and we’re already getting a sense that commodities could very well outperform just as they did in 2021.

Evidence supporting our commodity supercycle thesis continues to mount each day, as participation across the commodity space expands.

Crude oil is breaking above 90. Base metals like aluminum and tin are hitting new all-time highs. And the rally in grains is getting back on track.

All these things suggest that last year's bull run wasn’t a simple “one and done” event.

One key difference between last year and today is strength among commodities is starting to spill over into commodity-related equities.

This is a critical development that supports our bullish thesis. 

From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley

The middle of the curve is catching higher as the US 10-year Treasury yield pushes toward its next milestone at 2.00%.

Now that we’re starting to see some follow-through to the upside, it raises the question…

Are these new highs in the 10-year sustainable?

With inflation expectations just off their highs, short-term rates surging in the US, and yields ripping higher across the globe, we think the answer is a resounding yes! 

A few weeks ago, we discussed how global yields -- particularly those in developed Europe -- were confirming the new highs for US yields.

Since then, we've only seen this trend accelerate. With central banks turning increasingly hawkish, rates continue to break out to new highs around the world.

Today, we're going to dive further into this theme by taking a look at a handful of benchmark rates outside the US. 

Let’s dive in!

First up is the German 10-year: